Chipotle CEO details how chain will handle Trump tariff costs
Published On Mar 3, 2025, 10:31 AM
Chipotle's CEO, Scott Boatwright, stated that the company plans to absorb the costs from upcoming tariffs on imports from Mexico and Canada, expected to take effect shortly. These tariffs, imposed by President Trump, could impact ingredient prices, as Chipotle sources a small portion of its ingredients from these countries. If the tariffs significantly increase costs, the company may reconsider its stance on absorbing those expenses. Currently, a noted increase in costs could be about 60 basis points for Chipotle's sales.
Stock Forecasts
CMG
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Chipotle has a relatively low dependency on the affected imports, which may mitigate the overall impact of the tariffs initially. However, if costs escalate, it may lead to higher consumer prices or affect profit margins negatively. Investors should monitor the company's decisions in response to tariff impacts closely.
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